Calculation Depreciation Rate 40 40 40 % % % 40 % # of Months 6/12 12/12 12/12 12/12 +A Depreciation Expense 1825029200 17520 10512 Accumulated Depreciation End of Year 18250 32368 48552 64736 80920 Carrying Amount 73000 4380026280 15768

Depreciation and carrying value are accounting concepts used to track the decrease in the value of…

Answered: Calculation Depreciation Rate 40 40 40…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $60,000. The truck falls into the MACRS 3-year class, is not eligible for either bonus depreciation or Section 179 expensing, and it will be sold after three years for $20,000. Use of the truck will require an increase in NWC (spare parts inventory) of $2,000. The truck will have no effect on revenues, but it is expected to save the firm $20,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. ts What will the cash flows for this project be? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Print Year 1 2 ferences FCF
C E F H |Historical cost Estimated useful life 2$ 270,000 6 years Salvage value Estimated useful hours $ 24,000 12,000 hours Estimated hours per year: 3,100 2019 1,100 2020 1,200 2021 2,800 2022 2,600 2023 1,200 2024 Required 1 Complete the depreciation schedule using the Double Declining Balance Method. Adventure Park, Corp Depreciation Schedule - Double Declining Balance Depreciation Expense Ending Book Balance Beginning Year Book Balance Rate # of Years 2019 2020 2021 2022 2023 2024 HINT: the last year of depreciation expense will be a plug in order not to depreciate below the salvage value. Your ending book balance should be the $24,000 salvage value. 2 Analyze the effect of depreciation on the 2020 financial statements. Page 1 Assets = Liabilities + Equity Revenues Expenses = Net Income 3 Record depreciation expense for 2020. General Journal DR CR
QS 10-6 (Algo) Double-declining-balance method LO P1 A building is acquired on January 1 at a cost of $870,000 with an estimated useful life of eight years, and salvage value of $78,300. Compute depreciation expense for the first three years using the double-declining-balance method. Note: Round your answers to the nearest dollar. Annual Period First Year Second Year Third Year Depreciation for the Period Depreciation Rate(%) Beginning of Period Book Value Depreciation Expense End of Period Accumulated Depreciation Book Value
Qd 119.
A barn that cost $42,000 to construct is placed in service midyear as a 20-year property. What is the MACRS depreciation for year 3? Click the icon to view a table of MACRS rates. The year 3 depreciation is $ (Round to the nearest cent as needed.)
QUESTION 9 Amotor vehicle which cost £30,000 is depreciated at 20% per annum using the reducing balance method. The depreciation charge for the second year would be: a. £13,800 b.E8,000 c. £4,800 24,000x20%=£4,800 d.£7,200
initial book value $ n residual value $ years years 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 $ 12 $ annual depreciation cumulative depreciation BV 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 3,000,000 9 $ 10 $ 12 11 $ 12 $ 16.67% annual depreciation cumulative depreciation BV 500,000.00 $ 416,666.67 $ 347,222.22 $ 289,351.85 $ 241,126.54 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 2,750,000 500,000 $ 2,500,000 750,000 $ 2,250,000 1,000,000 $ 2,000,000 1,250,000 $ 1,750,000 1,500,000 1,250,000 1,000,000 750,000 500,000 250,000 1,500,000 $ 1,750,000 $ 2,000,000 $ 2,250,000 $ 2,500,000 $ 2,750,000 $ 3,000,000 $ 200,938.79 $ 167,448.99 $ 139,540.82 $ 116,284.02 $ 96,903.35 $ 80,752.79 $ 67,293.99 $ - 500,000.00 $2,500,000.00 916,666.67 $2,083,333.33 1,263,888.89 $1,736,111.11 1,553,240.74 $1,446,759.26 1,794,367.28 $ 1,205,632.72 1,995,306.07 $1,004,693.93 2,162,755.06 $ 837,244.94 2,302,295.88 $ 697,704.12…
Sairra LLC purchased only one asset during the current year (a full 12-month tax year). On April 16 Sairra placed in service furniture (seven-year property) with a basis of $38,000. Calculate the maximum depreciation expense for the current year (ignoring §179 and bonus depreciation). (Use MACRS Table 1.) (Round final answer to the nearest whole number.) Multiple Choice $2,715 $5,430 $6,320 $7,600 None of the choices are correct.
! Required information Problem 7-5B Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Cheetah Copy purchased a new copy machine. The new machine cost $110,000 including installation. The company estimates the equipment will have a residual value of $27,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Hours Used 2,000 1,600 2,000 3,200 Year 1 2 4 Problem 7-5B Part 2 2. Prepare a depreciation schedule for four years using the double-declining-balance method. (Hint: The asset will be depreciated in only two years.) (Do not round your intermediate calculations.) X Answer is complete but not entirely correct. CHEETAΗ COPY Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation Accumulated Year Вook Value Danreaintion Evnanse
Problem 11-2 (Algo) Comprehensive problem; Chapter 10 and 11 [LO11-2, 11-4]
Table 1 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7.41 11.52 12.49 11.52 7.70 6.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92 7.37 6.23 5.285 Year 7 8.93 6.55 5.90 4.888 Year 8 4.46 6.55 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 6.55 5.90 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 5.90 4.461 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231 Table 3 Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1…
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Calculation Depreciation Rate 40 40 40 % % % 40 % # of Months 6/12 12/12 12/12 12/12 +A Depreciation Expense 18250 29200 17520 10512 Accumulated Depreciation End of Year 18250 32368 48552 64736 80920 Carrying Amount 73000 43800 26280 15768